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ITEM 5.2 M/I HomesOtkgoF MINNESOTA DEPARTMENT INFORMATION Request for City Council Action ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE: Planning City Planner Licht 12 June 2017 PRESENTER(s) REVIEWED BY: ITEM #: City Planner Licht City Administrator Flaherty ITEM 5.2 — M/1 Homes AGENDA ITEM DETAILS RECOMMENDATION: City staff recommends approval of a PUD -CUP amendment designating 31 single family villa lots within Boulder Creek 3 d Addition and future 4th Addition. ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED? No Held by Planning Commission 5 June 2017 BACKGROUND/J USTI FICATION: M/I Homes is acquiring the 55 foot and 75 foot lots within Boulder Creek. M/I Homes has submitted an application to designate the 31 lots that are to be 55 feet wide lots within Boulder Creek 3`d Addition and future 4th Addition as detached townhomes with association provided yard maintenance. The Planning Commission held a public hearing to consider the application on 5 June 2017. Mr. John Rask of M/I Homes was present to describe their request, provide information regarding the proposed house designs, and address questions. Comments from the public and the Planning Commission discussion are summarized in the draft minutes of the Planning Commission meeting attached. The public hearing was closed and the Planning Commission voted 6-0 to recommend City Council approval of the application. SUPPORTING DOCUMENTS ATTACHED: • Planning Report dated 31 May 2017 • Draft minutes of the June 5, 2017 Planning Commission meeting • Findings of Fact and Decision POSSIBLE MOTION PLEASE WORD MOTION AS YOU WOULD LIKE ITTO APPEAR IN THE MINUTES: Motion to approve a PUD -CUP for M/I Homes designating lots within Boulder Creek 3`d Addition and future 4th Addition as detached townhomes subject to the conditions as outlined in the Findings of Fact and Decision as presented. BUDGET INFORMATION FUNDING: BUDGETED: NA TPC3601 Thurston Avenue N, Suite 100 Anoka, MN 55303 Phone: 763.231 .5840 Facsimile: 763.427.0520 TPC(c_bP1anningCo,corn PLANNING REPORT TO: Otsego Planning Commission FROM: D. Daniel Licht, AICP RE: Otsego — Boulder Creek; M/I Homes PUD -CUP amendment REPORT DATE: 2 June 2017 ACTION DATE: 16 June 2017 TPC FILE: 101.02 BACKGROUND Mattamy Homes received preliminary plat approval for Boulder Creek on 14 July 2014 for development of 360 single family lots. The preliminary plat approval included a PUD -CUP allowing for specific lot requirements within the development, including 137 lots with a minimum width of 55 feet. Mattamy Homes has announced their intention to leave the Minnesota market and is selling the finished lots within Boulder Creek, Boulder Creek 2"d Addition, Boulder Creek 3rd Addition, and future final plat of Boulder Creek 4th Addition to M/I Homes (which acquired Hans Hagen Homes) and CalAtlantic Homes. M/1 Homes is acquiring the 55 foot and 75 foot lots within Boulder Creek. M/I Homes has submitted an application to designate all of the 55 foot wide lots as detached townhomes with association provided yard maintenance. However, after meeting with existing residents of Boulder Creek and the Boulder Creek Homeowners' Association, M/I Homes has amended their application so as only to apply to 31 of the 55 foot wide lots that within Boulder Creek 3rd Addition and one lot that will be final platted with Boulder Creek 4th Addition. A public hearing to consider a PUD -CUP amendment for certain 55 foot wide lots within Boulder Creek has been noticed for the Planning Commission meeting on 5 June 2017. Exhibits: • Preliminary Plat Lot Designation Map ANALYSIS PUD -CUP. M/1 Homes is proposing to marl<et the 32 lots within Boulder Creel< 3rd Addition and future 4th Addition as detached townhouses with homeowner association maintained lawn and sidewalk. Consideration of the PUD -CUP amendment designating these lots as detached townhomes is to be evaluated based upon, but not limited to, the criteria outlined in 20-4-2.F of the Zoning Ordinance: 1. The proposed action's consistency with the specific policies and provisions of the Otsego Comprehensive Plan. Comment: The Comprehensive Plan guides the subject site for low-to-medium density residential uses. Detached townhouse dwellings expand housing choice within the City providing options for those seeking lower individual maintenance requirements but with the separation of a single family dwelling. Detached townhomes have been found to be a desirable use within areas guided for low or low-to-medium density residential land uses that to expand lifecycle options and as an alternative to traditional single family dwellings consistent with the following policies: • Encourage housing styles and development techniques that conserve land and increase efficiency provided that guided densities are not exceeded. Establish single family dwellings as the primary type of housing maintained and developed within the community through designation of a variety of single family lot sizes to create potential for added diversity in the housing supply and create housing opportunities for all segments of the population. 2. The proposed use's compatibility with present and future land uses of the area. Comment: The preliminary plat and PUD -CUP for Boulder Creek designated the number and location of 55 foot wide lots integrated within the overall development. Detached townhouses are effectively single family dwellings and the change in status of these specific lots being acquired and built upon by M/1 Homes within Boulder Creek 3rd Addition and future 4th Addition will not alter the character of the neighborhood as they will comply with the same lot requirements that applied to the previous builder. 3. The proposed use's conformity with all performance standards contained within the Zoning Ordinance and other provisions of the City Code. Comment: The proposed detached townhomes will comply with all performance standards of the Zoning Ordinance and conditions of the PUD -CUP. 0A 4. Traffic generation of the proposed use in relation to capabilities of streets serving the property. Comment: The proposed PUD -CUP will not alter the number of proposed dwelling units within the preliminary plat and thus will not result in an increase in traffic beyond that planned for with the approval of the preliminary plat. 5. The proposed use can be accommodated by existing public services and facilities and will not overburden the City's service capacity. Comment: The proposed PUD -CUP will not have any effect on the City's service capacity as the number of dwelling units is unchanged from that approved with the preliminary plat. House Plans. The approval of the Boulder Creek preliminary plat and PUD -CUP does not incorporate specific house designs or unique architectural standards applicable to development of the lots in Boulder Creek. The only difference between the Zoning Ordinance requirements from a construction standpoint for a single family dwelling and a detached townhome is in minimum garage area. An attached garage for a single family dwelling must have a minimum area of 480 square feet, whereas an attached garage for a detached townhouse must have a minimum area of 440 square feet. City staff has requested that M/1 submit representative plans for the homes to be built on these lots for consideration by the Planning Commission. Landscape Plan. M/I Homes must provide a template landscape plan for the detached townhome lots that includes a minimum of two shade trees and foundation plantings to be installed as each dwelling is constructed. Homeowners Association. M/1 Homes must submit documents to establish the homeowners association for these proposed detached townhome lots as either separate from or underneath the umbrella of the existing homeowners association for Boulder Creek to provide for at least lawn and snow maintenance of these lots. RECOMMENDATION The proposed designation of the 55 foot wide lots within Boulder Creek 3rd Addition and future 4th Addition as detached townhouse dwellings is consistent with the Comprehensive Plan and complies with the requirements of the Zoning Ordinance. Our office recommends approval of the application as outlined below. POSSIBLE ACTIONS A. Motion to approve a PUD -CUP for M/I Homes designating lots within Boulder Creek 3`d Addition and future 4th Addition as detached townhomes. subject to the following conditions: M/I Homes shall submit homeowners association documents for the designated detached townhome lots within Boulder Creek 3`d Addition and future 4th Addition to provide for at least lawn and snow maintenance of these lots, subject to review and approval of City staff. 2. M/I Homes shall submit a template landscape plan for the detached townhome lots that includes a minimum of two shade trees and foundation plantings to be installed as each dwelling is constructed, subject to review and approval of the Zoning Administrator. B. Motion to deny the request based on a finding that the application is not consistent with the policies of the Comprehensive Plan, requirements of the Zoning Ordinance, and provisions of the Boulder Creek preliminary plat and PUD -CUP. C. Motion to table. Adam Flaherty, City Administrator/Finance Director Tami Loff, City Clerk Andy MacArthur, City Attorney Ron Wagner, City Engineer John Rask, M/I Homes Wayne Soojian, W/I Homes 4 Carlson IL,e,e,kMcCain 6o-441de,t4 OTSEGO Otsego Planning Commission June 5, 2017 Page 2 Commissioner Thompson motioned to approve a conditional use permit allowing a second lot access to a public street from 9747 101St Street NE, subject to the conditions listed in the Planning Report dated 31 May 2017. Seconded by Commissioner Schuck. All in favor. Motion carried. 3.2. Boulder Creek: A Amend Boulder Creek PUD -CUP to establish the principal building on 55 foot wide lots as detached townhouse dwellings. City Planner Licht presented the Planning Report. John Rask of M/I Homes, 941 NE Hillwind Road, Fridley MN 55432, was present. Mr. Rask said what are referred to as detached townhomes in the City's Zoning Ordinance are a single family home built on a single family lot with association lawn and sidewalk maintenance. Chair Black opened the Public Hearing at 7:17 PM Bill Mussel, 7649 Paris Court NE, is concerned as to what is allowed with the detached townhome. City Planner Licht said the Zoning Ordinance only establishes minimum requirements for livable space and garage space for detached townhomes and per building code standards, these are single family homes. Mr. Mussel asked the builder whether or not they plan to build any of these homes within the current areas and the spec homes currently being put up. Mr. Rask said that they are offering a number of single level homes in the neighborhood, so what we are talking about here are only association maintained ones. Josh DeZurik, 15548 76th Court NE, thanked the builder for responding to a lot of the concerns as the association meeting. Mr. DeZurik asked where the 4th addition would be located stating he never heard anything about a phase 4. City Planner Licht said that they are currently grading phase 3 and phase 4 at this time and the 4th addition reference in this application consists of one lot. Commissioner Thompson asked if some would have basements and other would not. Mr. Rask said that they do offer slab on grade homes and said that this is typically what they would do if the home wasn't already graded for a basement of walkout. Commissioner Thompson asked if the homes would include a safe room if it's a slab on grade home. Mr. Rask said the safe rooms would be provided for slab on grade homes as required by the Zoning Ordinance. Commissioner Thompson asked how wide the garage door is on the third stall. Mr. Rask said it should be a standard size 8 foot door. Otsego Planning Commission June 5, 2017 Page 3 Commissioner Offerman asked City Planner Licht that on previous applications has the City added requirements to require different designs and building colors? City Planner Licht said the City has added a monotony clause on similar developments and one woud be appropriate here. Commissioner Stritesky asked if all the setbacks are as required with the preliminary plat? City Planner Licht said yes. Joel Demaris, 7676 Palmgren Avenue NE asked the builder for clarification for the northwest section of the first final plat if there will be any villa style homes built on those lots. Mr. Rask said that there will be one level homes offered but there will not be any association maintenance on them. City Planner Licht said that the original approval included potential one -level home styles that would fit on those 55 lots also. Commissioner Schuck asked if there is an existing homeowners association that covers the balance of the development and will any of the new homes going in on the southeast corner still be subject to the existing homeowners association. City Planner Licht said yes. After no further comments, Chair Black closed the Public Hearing at 7:30 PM. Commissioner Stritesky asked if these lots in the southeast corner are going to be a separate association or an additional subassociation within the current homeowners association? Mr. Rask said these lots will be part of the existing homeowners association but there will be subassociation for their snow and lawn care. Commissioner Stritesky motioned to approve a PUD -CUP for M/I Homes designating lots within Boulder Creek 3rd Addition and future 4th Addition as detached townhomes subject to the conditions outlined in the 2 June 2017 Planning Report and the following: 4. No exterior elevation shall be used on two abutting lots or lots directly across a public street, and no elevation shall be used for more than 25 percent of the lots. Seconded by Commissioner Thompson. All in favor. Motion carried. 3.3. Crimson Ponds West 4th Addition: A Zoning Map amendment rezoning a portion of Crimson Ponds West from R-4, Single Family District to R-5, Single and Two Family District. P OtCI�eooo MINNESOTA V APPLICANT: M/1 Homes 7 Jun 17 FINDINGS & DECISION PUD -CUP APPLICATION: Request for a PUD -CUP amendment designating 31 single family villa lots within Boulder Creek 3`d Addition and future 4th Addition. CITY COUNCIL MEETING: 12 June 2017 FINDINGS: Based upon review of the application and evidence received, the Otsego City Council now makes the following findings of fact: A. The legal description of the property is described as: Lots 1-12, Block 5; Lots 1-9, Block 6, Lots 3-13, Block 9; Outlot G; Boulder Creek 3'd Addition, City of Otsego, Wright County, Minnesota. B. The property lies within the East Sewer District and is guided for low-to-medium density land uses by the Otsego Comprehensive Plan, as amended. C. The property is zoned R-5, Single and Two Family Residential District, which allows single family dwellings as a permitted use. D. The applicant is requesting amendment of the planned unit development -conditional use permit approved by the City Council on 14 July 2014 to designate 31 lots within Boulder Creek 3`d Addition and future 4th Addition as association maintained properties. E. The Planning Commission and City Council must take into consideration the possible effects of the PUD -CUP with their judgment based upon (but not limited to) the criteria outlined in Section 20-4-2.17 of the Zoning Ordinance: The proposed action's consistency with the specific policies and provisions of the Otsego Comprehensive Plan. Finding: The Comprehensive Plan guides the subject site for low-to-medium density residential uses. Detached townhouse dwellings expand housing choice within the City providing options for those seeking lower individual maintenance requirements but with the separation of a single family dwelling. Detached townhomes have been found to be a desirable use within areas guided for low or low-to-medium density residential land uses that to expand lifecycle options and as an alternative to traditional single family dwellings consistent with the following policies: • Encourage housing styles and development techniques that conserve land and increase efficiency provided that guided densities are not exceeded. • Establish single family dwellings as the primary type of housing maintained and developed within the community through designation of a variety of single family lot sizes to create potential for added diversity in the housing supply and create housing opportunities for all segments of the population. 2. The proposed use's compatibility with present and future land uses of the area. Finding: The preliminary plat and PUD -CUP for Boulder Creek designated the number and location of 55 foot wide lots integrated within the overall development. Detached townhouses are effectively single family dwellings and the change in status of these specific lots being acquired and built upon by M/1 Homes within Boulder Creek 3rd Addition and future 4th Addition will not alter the character of the neighborhood as they will comply with the same lot requirements that applied to the previous builder. 3. The proposed use's conformity with all performance standards contained within the Zoning Ordinance and other provisions of the City Code. Finding: The proposed detached townhomes will comply with all performance standards of the Zoning Ordinance and conditions of the PUD -CUP. 4. Traffic generation of the proposed use in relation to capabilities of streets serving the property. Finding: The proposed PUD -CUP will not alter the number of proposed dwelling units within the preliminary plat and thus will not result in an increase in traffic beyond that planned for with the approval of the preliminary plat. 5. The proposed use can be accommodated by existing public services and facilities and will not overburden the City's service capacity. Finding: The proposed PUD -CUP will not have any effect on the City's service capacity as the number of dwelling units is unchanged from that approved with the preliminary plat. F. The planning report dated 2 June 2017 prepared by the City Planner, The Planning Company LLC., is incorporated herein. G. The Otsego Planning Commission held a public hearing at their regular meeting on 5 June 2017 to consider the application, preceded by published and mailed notice. Based upon review of the application and evidence received, the Otsego Planning Commission closed the public hearing and recommended by a 6-0 vote that the City Council approve the request based on the aforementioned findings. DECISION: Based on the foregoing information and applicable ordinances, the application is hereby APPROVED and is subject to the following conditions: M/I Homes shall submit homeowners association documents for the designated detached townhome lots within Boulder Creek 3rd Addition and future 4th Addition to provide for at least lawn and snow maintenance of these lots, subject to review and approval of City staff. 2. M/1 Homes shall submit a template landscape plan for the detached townhome lots that includes a minimum of two shade trees and foundation plantings to be installed as each dwelling is constructed, subject to review and approval of the Zoning Administrator. 2 MOTION BY: SECOND BY: ALL IN FAVOR: THOSE OPPOSED: Attest: ADOPTED by the City Council of the City of Otsego this 12th day of June, 2017. Tami Loff, City Clerk 3 CITY OF OTSEGO By: Jessica L. Stockamp, Mayor